HomeMy WebLinkAboutAgenda Bill 3C 06/21/2010~1 ~-evi.dcvltP.vw#3.C
DATE: June 21, 2010
TO: Honorable Mayor and Members of the City Council. through City Manager
FROM: Bonne: Gaebler, Housing Director
SUBJECT: Adoption Of A Resolution Electing To Receive For the Benefit of the City of
Petaluma Annual Tier One :Statutory Tax Increment Pass-Through Payments
Generated by the P.CD Project Area.
R]EC®1VI1kIENDA'TION
It is recommended that the City Council adopt the attached Resolution Electing To Receive For
the Benefit of-the City of Petaluma Annual Tier Orie Statutory Tax Increment Pass-Through
Payments Generated by the PCD Project Area.
ive January 1, 19.94,. AB 1'290 amended the Community Redevelopment Law (CRL) to
e redevelopment agencies with plans adopted after January 1, L9:94 (or certain
;lopment plan amendments adop"ted after that date) to calculate and pay appropriate "pass-
;h" amounts annually`to"the affected taxing entities (e.g: library, school district, et.al.)
on a,formula in Health~and Safety Code section 33607.5. One 'of the triggers for such
Zrough payments is an amendment to extend or eliminate the time limit for an agency to
incur
The City amended the'PCD plan n,2006 and eliminated the indebtedness time limit for that
project area. As a result, beginning irr FY 2009-10, the year that the time limit for incurring
indebtedness would have been. met absent the amendment, increases to the tax increment
revenues are subject to AB 1.290.
'DDIS:C,US'SION
The CRL permits the City. to. elect to receive a share of the Tier One pass through payments
representing-20% of the tax increment increase generated by the PCD project area. A resolution
is required to make that election and direct the County Assessor to distribute the funds to the
City. If the Gty Council directs the County Auditor to designate the pass-through payments to
the City, the City is guaranteed to receive the funds. If no election' is made, the funds maybe
distributed to the PCDC or the County Auditor may alter-its current practice and distribute the
funds ;to other agencies that receive:a share of local property taxes.. The City Council can retain
those monies in the General Fund,, or can re-direct the 'funds to the PCDC after receiving them.
Staff recommends that these monies be retained in the General Fund.
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Agenda Review:
Div. Manager - ~ ~ City Attorney Finance Director_ City Managerc~~~y~
_ . _ ;b - -......_ _ . _ a .,
FINANCIAL IMPACTS' ,
It is antcpated'that'the revenue to the City General Fund resultng.fromths Council action will
amount to approxmately~$'S,000-2`5:,000 annually in the years 2:010=20:15. It is further estimated
that these funds ~w~i~ll total approximately $3.2 million over the life of the project.
Account Name: Securcd,Property Tax' 11.00-11.1 00-41 1 1 0
FY 20.,1.0-2011 Budget: . $6,740,700
A'I'TACIIMEN~'S
1.. Resolution
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Attachment #1
1~eSO'lYltr®n N,®. 2Qg®- N.C.S.
®~' the City ®f Petaluma, Calfo~naa
RES®LU~'ION ELECTING- TO RECEIVE FOR TIIE BENEFIT OF TIIE CI'T'Y"OF
I,UIVIA ANNiJAL T`IEIZ ONE S'I'AT'UTOR~' TAX INCI~IVIENT PASS-TI~I2OUGII
PET
PA~'1VIENTS GENEIZATEI) BY THE PGI) PROTECT AREA.
~ WHEREAS, the City Council ("City Council") of the CityofPetaluma ("City")
adopied Ordinance No. 1725 in July "1988, approving and adopting the Redevelopment Plan for
the P,etalixma Community Development Redevelopment Plan ("PCI) Redevelopment Plan");
and i
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WHEREAS, the PCD Redevelopment Plan was subsequently amended in 1994, 2000;
n September 11, 2006 ("2006 Plan Amendment"), by which amendment the Petaluma
and o
Comi unity De~elopment;Project Area ("Proj'ect Area") was fiscally merged with the Central
BusmessDistrict Project Area ("Merged Project Area"); and
WIIEREAS; the 2'00:6 Plan Amendment," among other changes to the Redevelopment
Plan; eliminated tlie:time limit for the Petaluma Community D"evelopment Commission
("PCDC") to incur debt; and.
WHEREAS, Health sand S"afety Code. Section 33607.7 provides that where a
~ ~ p p ~endment increases or elimi-Hates the time limit:on establishing
rede~elo merit lan am
indebtedness, and an agency does not have an existing pass-through payrrient agreement entered
into prior to January 1, 1994; with affected taxing entities, the agency shall pay to affected taxing
entities Statutory Pass=through Payin°ents pursuant to athree-tiered formula established.in Health
and Safety Code Section 33607.5; and.
W>EIE~AS; Section, 33607.7 further provdes'that the adjusted base year assessed value;
for purposes of;makirg utory Pass-through.Payments shall.be the year in which thelimitation
Stat
being amended would fi'ave taken effect without the amendment; acid
WIiEREAS,; .liut for the 2006 -Plan Amendment, the time limit for the PCDC to incur
debt for the Project"Area would'have occurred in Fiscal Year 2009-2010; and
" WHEREAS;. in Fiscal Year 2009-2010, the PCDC did~not receive tax increment for the
Project Area; and
WIIEI2EAS, Health and Safety Code Section 33607.5(b) authorizes the City,
commencing with the first fiscal year in which the PCDC receives tax increment- and .continuing
through. the last fiscal year in which the PCDC receives tax increment, to elect to receive annual
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"Tier One" Statutory Pass-through Payments, consisting of'the .City's share of property taxes
generated.'witlin the Project.Area multiplied by 25 percent of the tax increment received by the
PCDC, net Hof the amount that th'e PGDC is required to deposit in the Low and Moderate Income
Housing Fund; and'
W>FIEREAS; commencing in Fiscal Year 201:0-20.11, as_an affected taxing entity, the
City Council desires. that the City receive its annual allocation of tax increment pursuant to.
Health and Safety Code Section 33607.5(b).
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NOW, TI~EREFORE BE IT RESOLVED by the City Council of the City of Petaluma
as follows:
1. The City of Petaluma hereby elects to be allocated "Tier One" Statutory Pass-
through Payments in accordance with Health and Safety Code Section 33607.5(b).
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2. The City of Petaluma Hereby directs that a copy of this Resolution, as adopted, be
transmitted to the Sonoma. County Auditor-Controller.
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